Ecolab to buy CoolIT in $5B bet on AI data centers
Ecolab, best known for its work in water and hygiene, is about to make a big move into the AI world by acquiring CoolIT Systems, a company that builds high-tech liquid cooling for data centers.
The deal with KKR (CoolIT's majority owner) could be worth up to $5 billion, according to reports.
Massive return for KKR
AI data centers are booming, and keeping them cool is a huge challenge.
CoolIT started out making cooling systems for gaming, but has shifted to supporting AI infrastructure in data centers.
KKR is CoolIT's majority owner; the company was valued at about $270 million, so they're scoring a massive return.
Even Abu Dhabi's Mubadala has a minority stake in the company.
Ecolab's stock drops
Ecolab's stock dropped about 2.5% after word got out, while KKR shares dipped too.
Still, the deal would represent a significant expansion of Ecolab's presence in AI infrastructure.